SS&C to Buy Advent Software for $2.3 Billion

SS&C Technologies agreed on Monday to buy Advent Software for about $2.3 billion in cash, uniting two big providers of software for the financial services industry.

Under the terms of the deal, SS&C will pay $44.25 a share, a 7 percent premium to Advent’s closing price on Monday. Including the assumption of debt, the transaction is valued at $2.7 billion.

Underpinning the takeover is a bet that financial companies will continue to outsource some of their systems to reduce costs. By buying Advent, SS&C will gain a big provider of software used by 4,300 investment fund managers, including hedge funds and family offices.

It is the latest acquisition by SS&C, which has made 40 acquisitions as part of its bid to expand. Among those transactions were the $860 million purchase of the hedge fund services company GlobeOp in 2012 and the $95 million deal for DST Global Solutions last year.

SS&C and Advent expect to reap about $45 million in annual cost savings within three years.

SS&C plans to pay for the deal, as well as refinance some of its and Advent’s existing debt, with a combination of $3 billion in new borrowings, cash on hand and issuing about $400 million in new stock.

The deal is expected to close by the middle of the year, pending approval by Advent shareholders and regulators.